Did you know?
- The maximum amount insurers will generally pay for claims during the period of insurance is the amount specified on the insurance certificate.
- Insurers will usually accept as proof of loss, a certified statement from your auditors or accountants that shows the value of the property that is lost.
- Employee generally means any person employed by you under a contract of service or apprenticeship, but does not include:
- Any director, partner, trustee or principal
- Any broker, factor, commission agent, consignee, contractor or other agent of the same general character
What’s typically covered?
- Loss of money or contents or stock caused by theft, fraud or dishonesty by an employee.
What’s typically NOT covered?
Loss of money or contents:
- Resulting from any further act of fraud or dishonesty after you first discover that the employee has been previously engaged in provable dishonest conduct or has previous convictions for dishonest acts
- If the only proof of loss is shortage revealed by accounting records or a stock-take of inventory
- Discovered more than 12 months after the period of insurance has expired or more than 12 months after the termination of employment of the employee concerned
- That is not reported to the insurer within 21 days of the discovery of any act of fraud or dishonesty on the part of any employee
- Beyond the limit of cover stated
Things to consider
- Does the business have a reasonable turnover of staff?
- What kind of security systems does the business have in place to prevent employee theft or dishonesty?
- Are the inventory and money-handling operations of the business transparent enough to reveal any theft, fraud or dishonesty by employees?